The Consequences of Corn
New York Times editorial
By now most farmers know what they’ll be planting this spring. And all across the country the answer is the same: corn, corn, corn. The numbers are surprising. Farmers will plant some 90.5 million acres of corn this year — 12 million more than last year and the most since 1944. Soybean acres are down by more than 10 percent, and there are similar decreases in wheat and cotton. The reason for this enormous shift is, of course, the ethanol boom and the corn rush it has created.
If it were just a matter of shifting the balance in already planted acreage — more corn, less wheat — a point of economic equilibrium might be found soon enough. The real trouble comes at the edges. This corn boom puts pressure on land that has been set aside as part of the United States Department of Agriculture’s Conservation Reserve Program. Since the mid-1980s, farmers have enrolled some 37 million acres of farmland in the program. This is land that has been returned to nature, and it is part of what Americans pay for through the farm bill. Much of it is unsuitable for crops — too hilly, too wet, too valuable as wildlife habitat — but when corn prices are this high, the idea of suitable changes swiftly.
Agricultural interest groups have begun to call on the Department of Agriculture to release some of this land from the reserve so that farmers can put it into corn production. The U.S.D.A. has temporarily halted new enrollments in the program, and though it will probably not release land this year, the pressure to do so will only increase.
(Continued here.)
By now most farmers know what they’ll be planting this spring. And all across the country the answer is the same: corn, corn, corn. The numbers are surprising. Farmers will plant some 90.5 million acres of corn this year — 12 million more than last year and the most since 1944. Soybean acres are down by more than 10 percent, and there are similar decreases in wheat and cotton. The reason for this enormous shift is, of course, the ethanol boom and the corn rush it has created.
If it were just a matter of shifting the balance in already planted acreage — more corn, less wheat — a point of economic equilibrium might be found soon enough. The real trouble comes at the edges. This corn boom puts pressure on land that has been set aside as part of the United States Department of Agriculture’s Conservation Reserve Program. Since the mid-1980s, farmers have enrolled some 37 million acres of farmland in the program. This is land that has been returned to nature, and it is part of what Americans pay for through the farm bill. Much of it is unsuitable for crops — too hilly, too wet, too valuable as wildlife habitat — but when corn prices are this high, the idea of suitable changes swiftly.
Agricultural interest groups have begun to call on the Department of Agriculture to release some of this land from the reserve so that farmers can put it into corn production. The U.S.D.A. has temporarily halted new enrollments in the program, and though it will probably not release land this year, the pressure to do so will only increase.
(Continued here.)
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